_____________________________________________________________________
MONTHLY FINANCIAL STATUS REPORT
October 2024
1 City of Santa Clara
Financial Status Report as of October 31, 2024
This report summarizes the City’s financial performance for the month ended October 31, 2024.
Financial analysis for the report is provided for the General Fund, select Special Revenue Funds, Enterprise Operating Funds, and Capital Improvement Funds. Financial information included in this report is unaudited.
Economic Outlook
In its Winter 2024 Forecast, the UCLA Anderson Forecast points to uncertainty regarding the U.S. economic outlook for 2025 and 2026 given the potential impacts of policies regarding tariffs and deportations. “With real GDP growth above two percent, the U.S. economy continues to outshine its global peers. The incoming tariff and deportation policies will put upward pressure on costs and downward pressure on consumption, leading to lower GDP growth, dipping below two percent (SAAR) in the second half of 2025. We expect GDP growth to partially recover by the end of 2026 as the economy adjusts to the tariffs and the changing composition and size of the labor force.”1 U.S. Quarterly Real GDP Growth Forecast (UCLA Winter 2024 Economic Forecast)
1 UCLA Anderson Forecast Winter 2024 Economic Forecast, “Cloudy with a Chance of Inflation”, Clement Bohr
2 City of Santa Clara
Financial Status Report as of October 31, 2024
On a national level, the unemployment rate remained unchanged at 4.1% between September and October 2024. In October, the number of unemployed persons totaled 7.0 million, an increase from
6.8 million in September.2
In the third quarter 2024 second estimate, the Gross Domestic Product (GDP) increased by 2.8%, following a GDP increase of 3.0% in the second quarter. The increase in real GDP primarily reflected increases in consumer spending, exports, nonresidential fixed investment, and federal government spending.3
At the state level, the California unemployment rate changed little from 5.3% to 5.4% between September and October 2024. This rate is higher compared to the 5.1% rate in October 2023. Over the past year, California employers have added 212,100 nonfarm jobs.4
2 https://www.bls.gov/news.release/pdf/empsit.pdf
3 https://www.bea.gov/sites/default/files/2024-10/tech3q24-adv.pdf 4 https://edd.ca.gov/en/about_edd/news_releases_and_announcements/unemployment-october-2024/
3 City of Santa Clara
Financial Status Report as of October 31, 2024
The winter 2024 UCLA Anderson Forecast for California assumes the state’s economy will grow at about the same rate as the U.S. in 2025 and 2026. “The unemployment rate for the 4th quarter of this year is expected to average 5.3%, and the average for 2025 and 2026 is expected to be 5.5% and
5.0% respectively. Our forecast for 2025 and 2026 is for total employment growth rates to be -0.7% and
1.6%. Non-farm payroll jobs are expected to grow at a 1.5% and 1.3% rate during the same two years.
Real personal income is forecast to grow by 2.3% in 2025 and 2.6% in 2026. In spite of the higher interest rates, the continued demand for a limited housing stock coupled with state policies inducing new homebuilding should result in the beginning of a recovery this year followed by slow but solid growth in new home production thereafter.”5
The unadjusted unemployment rate in the San José-Sunnyvale-Santa Clara Metropolitan Statistical Area (MSA) was 4.2% in October 2024, up slightly from a revised 4.1% in September 2024, and above the October 2023 estimate of 4.0%. Between October 2023 and October 2024, employment in this region increased by 7,200 jobs, or 0.6%. The largest increases were in private education and health services (up 10,900 jobs) and professional and business services (up 3,600 jobs). Notable employment reductions were in information (down 5,900 jobs) and manufacturing (down 5,300 jobs). 6 General Fund
The General Fund is the major operating fund for the City and includes multiple programs, services, and activities for the residents and businesses of the City. The adopted budget for operating revenues and expenditures for fiscal year 2024/25 was $310.7 million. The amended budget for revenues and expenditures was adjusted to $317.9 million to reflect carryover encumbrances from fiscal year 2023/24 and various budget amendments approved by the City Council through October 2024.
While it is very early in the fiscal year and limited data is available, General Fund revenues and expenditures are tracking within estimated levels.
5 UCLA Anderson Forecast Winter 2024 Economic Forecast, “California After the Election”, Jerry Nickelsburg 6 https://labormarketinfo.edd.ca.gov/file/lfmonth/sjos$pds.pdf
4 City of Santa Clara
Financial Status Report as of October 31, 2024
General Fund Revenues
As of October 31, 2024, $55.3 million or 18.7% of the General Fund estimated revenue (excluding transfers) was received. Collections are tracking below par through October due to the timing of payments. In some categories, a portion of the revenues received through October were accrued to the prior fiscal year because they accounted for activity in FY 2023/24. In other cases, such as property tax, most payments are scheduled to occur later in the fiscal year. Transfers and use of reserves of $22.1 million have occurred as budgeted.
Adopted Budget
Amended
Budget
Actual Through
10/31/2024
Percentage
Received
Actual Through
10/31/2023
$
Change From
Prior Year
Percentage
Change
TAXES
Sales Tax 62,900,000$ 62,900,000$ 8,626,310$ 13.71% 10,564,847$ (1,938,537)$ -18.35% Property Tax 94,391,000 94,391,000 3,254,255 3.45% 3,289,823 (35,568) -1.08% Transient Occupancy Tax 22,850,000 22,850,000 6,175,612 27.03% 2,831,072 3,344,540 118.14% Other Taxes 6,950,000 6,950,000 943,308 13.57% 1,041,865 (98,557) -9.46% Total Taxes 187,091,000 187,091,000 18,999,485 10.16% 17,727,607 1,271,878 7.17%
LICENSES & PERMITS
Business Licenses 6,000,000 6,000,000 2,569,390 42.82% 1,430,304 1,139,086 79.64% Fire Operation Permits 2,010,000 2,010,000 771,155 38.37% 479,556 291,599 60.81% Miscellaneous Permits 55,000 55,000 172,686 313.97% 111,499 61,187 54.88% Total Licenses & Permits 8,065,000 8,065,000 3,513,231 43.56% 2,021,359 1,491,872 73.81% FINES & PENALTIES 1,452,000 1,452,000 334,034 23.01% 874,030 (539,996) -61.78% INTERGOVERNMENTAL 970,000 970,000 433,437 44.68% 80,186 353,251 440.54% CHARGES FOR SERVICES 30,829,954 30,829,954 12,069,479 39.15% 9,633,887 2,435,591 25.28% SILICON VALLEY POWER TRANSFER 34,500,000 34,500,000 11,821,700 34.27% 10,970,083 851,617 7.76%
USE OF MONEY & PROPERTY
Interest 6,212,000 6,212,000 579,532 9.33% (409,667) 989,199 -241.46% Rent 13,028,187 13,028,187 4,431,745 34.02% 4,171,331 260,414 6.24% Total Use of Money & Property 19,240,187 19,240,187 5,011,277 26.05% 3,761,664 1,249,613 33.22% MISCELLANEOUS REVENUES 215,550 215,550 289,597 134.35% 101,667 187,930 184.85%
LAND PROCEED - - - N/A - - N/A
OTHER FINANCING SOURCES
Operating Transfer In - Storm Drain 1,454,000 1,454,000 1,454,000 100.00% 1,454,000 - 0.00% Operating Transfer In - Reserves 6,964,827 13,895,239 13,895,239 100.00% 8,012,113 5,883,126 73.43% Operating Transfer In - Fund Balances(1) 6,162,369 6,162,369 6,162,369 100.00% 4,759,683 1,402,686 29.47% Operating Transfer In - Miscellaneous 575,821 575,821 575,821 100.00% 746,044 (170,223) -22.82% Total Other Financing Sources 15,157,017 22,087,429 22,087,429 100.00% 14,971,840 7,115,589 47.53%
STADIUM OPERATION
Charges for Services 11,705,481 12,023,104 2,779,771 23.12% 715,189 2,064,582 288.68% Rent and Licensing 1,472,000 1,472,000 - 0.00% 69,313 (69,313) -100.00% Total Stadium Operation 13,177,481 13,495,104 2,779,771 20.60% 784,502 1,995,269 254.34% TOTAL GENERAL FUND 310,698,189$ 317,946,224$ 77,339,440$ 24.32% 60,926,825$ 16,412,615$ 26.94% (1) The Operating Transfer In - Fund Balances includes the carryover encumbrances of open purchase orders as of June 30, 2024 and mid year budget amendment from reserves.
Function
CITY OF SANTA CLARA
GENERAL FUND
REVENUE OVERVIEW AND COMPARISON BY TYPE
FISCAL YEAR 2024/25 PY REVENUE COMPARISON
5 City of Santa Clara
Financial Status Report as of October 31, 2024
General Fund Revenues
Sales Tax: The City of Santa Clara sales tax rate is 9.125%, of which the City receives 1.0%. As of October 31, 2024, $8.6 million has been collected, which is 18.4% lower than prior year collection levels. Given the timing of payments, the sales tax payments through October are for the months of July and August 2024 and reflect advances from the State. In November, the City received the true-up payment for the first quarter of FY 2024/25 (July – September activity) that brought collections to $19.2 million for that quarter. This collection level is well above prior year receipts of $15.1 million for the first quarter of FY 2023/24. This increase was primarily the result of a 44% increase in the Business-to- Business category, much of which is one time in nature. Growth was also realized in the construction (up 7.5%) and food products (up 1.3%) categories, partially offset by reductions in the general retail (down 4.9%) and transportation (down 9.8%) categories.
Property Tax: $3.3 million in property tax receipts were received in October 2024. The majority of property tax revenue is collected in February and April each year. Based on initial information from the County of Santa Clara, property tax receipts are projected to end the year at $95.9 million, slightly above the Adopted Budget estimate of $94.4 million.
Transient Occupancy Tax (TOT): TOT is calculated as a percentage of City hotel/motel room charges. The City’s current TOT rate is 12.5% and will increase to 13.5% effective January 1, 2025.
Through October 31, 2024, approximately $6.2 million was received, or 27.0% of the budget. This collection level was well above the $2.8 million received through October of the prior fiscal year due, in part, to the timing of payments. In this fiscal year, there was a large payment in October ($4.1 million) and a relatively smaller payment in November ($1.3 million) while last fiscal year, the payment in October was smaller ($1.5 million) and the November payment was larger ($2.9 million). After adjusting for the timing of these payments, collections are up approximately 30% in FY 2024/25. A portion of this growth is due to the TOT rate increase from 11.5% to 12.5% effective January 2024.
Other Taxes: Includes franchise tax and documentary transfer tax. The City has collected approximately $0.9 million through October, which is 9.5% lower than last fiscal year’s collection levels.
Receipts through October primarily reflect franchise tax collections, with minimal documentary transfer tax revenue collected.
Licenses & Permits: Includes business licenses, fire operation permits, and miscellaneous permits and fees. Revenue collections are tracking above par with receipts totaling $3.5 million, or 43.6% of the $8.1 million budget. This reflects strong growth in all categories with the largest collections in the business license tax category. Effective FY 2023/24, the City implemented a new Business License Tax methodology which is reflected in the receipts recorded this fiscal year totaling $2.6 million, or 42.8% of the budget. This collection level is above the prior year level of $1.4 million due, in part, to the timing of payments; last year, collections at the beginning of the year were delayed with the implementation of the new tax structure.
6 City of Santa Clara
Financial Status Report as of October 31, 2024
Fines & Penalties: Includes vehicle, parking, court fines, and miscellaneous penalty fines. The revenue collected in this category through October was $0.3 million. Collections in this category are tracking below the prior year.
Intergovernmental: Includes motor vehicle fees, state homeowner tax relief, state mandated reimbursement and redistribution of land sale proceeds and ground leases from the Successor Agency.
Through October 31, 2024, approximately $0.4 million has been collected, or 44.7% of the $1.0 million budget.
Charges for Services: Includes various plan check and zoning-related fees, engineering fees, administrative fees, and community service revenue from various recreational activities. Through October, collections totaled approximately $12.1 million or 39.2% of the budget. This reflects a 25.3% increase compared to last year’s collections, primarily due to higher receipts from engineering fees, Emergency Medical Services (EMS) transport fees, and interdepartmental charges.
Silicon Valley Power Transfer: In accordance with the City’s charter, Silicon Valley Power pays 5.0% of gross revenues to the General Fund. Transfers throughout the year are based on the budgeted estimate and will be trued up at the end of the fiscal year based on actual performance.
Use of Money & Property: Includes realized investment income and rental income. Through October, $5.0 million has been collected, compared to $3.8 million last fiscal year. This increase is due to higher interest and higher rents, specifically right-of-way, collected in the current year. This is mainly due to the timing of when the right-of-way revenue was recorded, when compared to last fiscal year.
Miscellaneous Revenues: Includes developer fees, donations, damage recovery, sale of surplus, and one-time miscellaneous revenues. Through October, collections total $0.3 million, compared to $0.1 million collected in the prior year.
Stadium Operation: Through October 31, 2024, approximately $2.8 million has been collected through charges for services.
7 City of Santa Clara
Financial Status Report as of October 31, 2024
General Fund Expenditures
As of October 31, 2024, $115.1 million or 36.2% of the General Fund operating budget had been expended, which is higher than prior year expenditure levels. Excluding transfers, expenditures totaled $97.1 million, or 32.4% of the budget, which is at par. Transfers of $18.0 million have occurred as budgeted. Overall, expenditures in the General Fund are at budgeted levels through October.
Adopted Budget
Amended
Budget
Actual Through
10/31/2024
Percentage
Used
Actual Through
10/31/2023
$
Change From
Prior Year
Percentage
Change
GENERAL GOVERNMENT
Non-Departmental 17,622,136$ 17,841,022$ 5,798,824$ 32.50% 3,156,215$ 2,642,609$ 83.73% City Council 1,196,923 1,196,923 387,669 32.39% 376,926 10,743 2.85% City Clerk 2,102,267 2,104,267 699,700 33.25% 554,726 144,974 26.13% City Manager 8,222,051 9,030,316 1,384,790 15.33% 1,118,432 266,358 23.82% City Attorney 3,357,661 3,440,037 969,506 28.18% 843,231 126,275 14.98% Human Resources 4,845,256 5,034,027 1,279,922 25.43% 1,084,556 195,366 18.01% Finance 21,008,682 21,922,775 7,056,728 32.19% 5,614,387 1,442,341 25.69% Total General Government 58,354,976 60,569,367 17,577,139 29.02% 12,748,473 4,828,666 37.88% PUBLIC WORKS 26,347,463 28,132,690 8,206,089 29.17% 7,813,620 392,469 5.02% COMMUNITY DEVELOPMENT 5,575,313 5,636,381 1,633,072 28.97% 1,668,888 (35,816) -2.15% PARKS AND RECREATION 23,172,047 23,931,989 7,465,008 31.19% 7,236,240 228,768 3.16%
PUBLIC SAFETY
Fire 66,292,191 66,954,133 23,738,480 35.45% 22,262,626 1,475,854 6.63% Police 92,074,298 92,973,019 30,196,963 32.48% 27,713,868 2,483,095 8.96% Total Public Safety 158,366,489 159,927,152 53,935,443 33.73% 49,976,494 3,958,949 7.92% LIBRARY 11,732,505 12,212,058 4,044,800 33.12% 3,347,030 697,770 20.85% DEPARTMENTAL TOTAL 283,548,793 290,409,637 92,861,551 31.98% 82,790,745 10,070,806 12.16%
OTHER FINANCING USES
Operating Transfer Out - Miscellaneous 626,778 626,778 626,778 100.00% 1,198,809 (572,031) -47.72% Operating Transfer Out - Debt Services 1,405,940 1,405,940 1,405,940 100.00% 1,402,440 3,500 0.25% Operating Transfer Out - Maintenance Dtrct 977,546 977,546 977,546 100.00% 942,413 35,133 3.73% Operating Transfer Out - Cemetery 823,000 823,000 823,000 100.00% 796,000 27,000 3.39% Operating Transfer Out - CIP 14,204,882 14,204,882 14,204,882 100.00% 7,305,499 6,899,383 94.44% Total Other Financing Uses 18,038,146 18,038,146 18,038,146 100.00% 11,645,161 6,392,985 54.90% STADIUM OPERATION 9,111,250 9,498,441 4,247,204 44.71% 4,515,793 (268,589) -5.95% TOTAL GENERAL FUND 310,698,189$ 317,946,224$ 115,146,901$ 36.22% 98,951,699$ 16,195,202$ 16.37% Function
CITY OF SANTA CLARA
GENERAL FUND
EXPENDITURES OVERVIEW AND COMPARISON BY FUNCTION
FISCAL YEAR 2024/25 PY EXPENDITURES COMPARISON
8 City of Santa Clara
Financial Status Report as of October 31, 2024
General Fund Expenditures
Below is an explanation of certain budget to actual expenditure variances by program.
Non-Departmental: Includes expenditures that are not attributable to a single department, but a function of the City in general. Through October, expenditures totaled $5.8 million, or 32.5% of the budget. These expenditures are at par of 33.3%, but significantly higher than prior year levels. This increase is primarily due to the timing of the insurance payment; last fiscal year, these expenditures were not reflected until later in the fiscal year.
City Attorney: Actual expenditures through October totaled approximately $1.0 million, which is 28.2% of the budget, which is below par. Spending is 15% higher than the total expenditures through the same time last fiscal year due primarily to increases in the salaries and benefits categories and the outside legal services category.
City Clerk: Through October, actual expenditures were tracking at $0.7 million or approximately 33.3% of the budget. This expenditure level reflects a 26% increase compared to last fiscal year due to one- time Granicus costs that are paid every other year.
City Council: Through October, expenditures were at 32.4% of budget, which is at par. Compared to the same period through last fiscal year, this reflects a slight increase in expenditures due to higher salaries and benefits spending, partially offset by lower non-personnel spend.
City Manager: The actual expenditures through October totaled $1.4 million, or 15.3% of the budget, which is below par for this time of the year. Expenditures are 23.8% higher compared with the spending level through the same period last fiscal year. The increase is attributable to higher spend in the salaries and benefits, advertising, and miscellaneous services and supplies categories.
Community Development Department: This department consists of three divisions: Planning, Building, and Housing and Community Services. The Building Division of this department is reflected in the Building Development Services Fund, which falls under the special revenue section of this report.
Through October, departmental expenditures for the Planning and Housing and Community Services divisions totaled $1.6 million, or 29% of the budget, which is below par of 33%. This expenditure level is slightly lower than prior year spend.
Finance Department: Through October, the Department’s expenditures totaled $7.1 million, or 32.2% of the budget, which is at par. This expenditure level was approximately 25.7% higher than through the same period last year. The current year spend reflects higher salaries and benefits and contractual services costs, primarily related to PeopleSoft and the Questica Budget System.
Fire Department: Through October, actual expenditures totaled $23.7 million, or 35.5% of the budget, which is above par. These expenditures also reflect a 6.6% increase from last fiscal year due to higher expenditures across the salaries and benefits and non-personnel categories including contractual services and capital outlay. Overtime expenditures are tracking over budget at 191% due, in part, to overtime expenditures related to mutual aid deployment efforts. These costs are reimbursable, and
9 City of Santa Clara
Financial Status Report as of October 31, 2024
budget actions will be brought forward for City Council approval to recognize the reimbursements and adjust the Department overtime budget as reimbursements are received. Excluding mutual aid-related costs, the overtime budget is 96.4% expended through October. Overtime is used to backfill for shift absences and vacant shift positions to maintain daily minimum staffing. It is anticipated that overtime expenditures will exceed the overtime budget as the current absence rate exceeds the estimate used in the development of the budget.
Through October, absences are down 8% (from 30,101 to 27,576 hours) when compared with the prior fiscal year but remain above historical levels. Absences are trending high in the areas of Family Medical Leave Act (FMLA) leave, sick leave, and vacation usage. It is important to note that employees can elect for compensatory time over overtime pay when backfilling shift absences, which increases the need to backfill when the compensatory time is used. Through October, the compensatory time payouts total $597,612, which is above historical levels but 43.5% below the payouts of $1,058,378 experienced through October of last fiscal year. The Department will continue to monitor expenditures throughout the fiscal year and bring forth budget recommendations, as needed.
Library Department: Through October, actual expenditures totaled $4.0 million, or 33% of the budget, which is at par, and 20.8% higher than expenditure levels last fiscal year. The higher spending is primarily in the salaries and benefits and maintenance categories.
Parks and Recreation Department: Through October, actual expenditures totaled $7.5 million, or
31.2% of the budget, which is slightly below par, but slightly above the prior year spend.
Police Department: Expenditures through October are tracking at expected levels at $30.2 million, or
32.5% of the budget; this is approximately 9% higher than prior year spending. The higher spend is primarily in the salaries and benefits and contractual services categories.
Stadium Operation: Stadium operating expenditures are incurred first and billed on a reimbursement basis creating a timing difference in revenue recognition. Stadium expenditures totaled $4.2 million through October, which is 6.0% lower than the prior year. This is primarily due to fewer ticketed Non- NFL events being held in the current year, resulting in lower as needed and overtime spend. The Stadium hosted four ticketed Non-NFL events and six NFL games through October.
10 City of Santa Clara
Financial Status Report as of October 31, 2024
Special Revenue Funds
The table below is a summary of revenues and expenditures of select Special Revenue Funds as of October 31, 2024. The amended budget reflects carryover encumbrances from fiscal year 2023/24 and budget amendments approved by the City Council through October 2024.
Revenues totaled approximately $9.2 million, while expenditures totaled approximately $7.4 million through the end of October. While revenue is tracking above par, expenditures are tracking below par of 33.3%. In the Building Development Services Fee Fund and Fire Development Services Fee Fund, development-related fees and expenditures are tracking above prior year levels. In the City Affordable Housing Fund and Housing Successor Agency Fund, higher interest earnings have been collected when compared to prior year levels. However, there have been lower interest collections in the Housing Authority Fund.
Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 10/31/2024 Received 10/31/2023 Prior Year Change Building Development Services Fee
Fund
16,164,000$ 16,164,000$ 6,482,617$ 40.11% 4,953,806$ 1,528,811$ 30.86% City Affordable Housing Fund 1,168,177 1,168,177 298,471 25.55% 110,383 188,088 170.40% Fire Development Services Fee
Fund
3,277,500 3,277,500 1,640,551 50.05% 1,243,226 397,325 31.96% Housing and Urban Development 2,532,068 3,375,068 394,194 11.68% 450,553 (56,359) -12.51% Housing Authority Fund 252,496 252,496 21,792 8.63% 68,444 (46,652) -68.16% Housing Successor Fund 1,306,326 1,306,326 376,367 28.81% 268,006 108,361 40.43% TOTAL 24,700,567$ 25,543,567$ 9,213,992$ 36.07% 7,094,418$ 2,119,574$ 29.88% Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 10/31/2024 Use d 10/31/2023 Prior Year Change Building Development Services Fee
Fund
15,044,148$ 15,852,488$ 5,050,234$ 31.86% 4,642,455$ 407,779$ 8.78% City Affordable Housing Fund 1,593,647 7,207,792 279,700 3.88% 343,555 (63,855) -18.59% Fire Development Services Fee
Fund
3,387,922 3,387,922 1,218,382 35.96% 1,020,766 197,616 19.36% Housing and Urban Development 2,532,068 4,071,407 530,263 13.02% 484,518 45,745 9.44% Housing Authority Fund 468,931 511,389 54,034 10.57% 58,696 (4,662) -7.94% Housing Successor Fund 902,579 1,012,590 249,105 24.60% 336,115 (87,010) -25.89% TOTAL 23,929,295$ 32,043,588$ 7,381,718$ 23.04% 6,886,105$ 495,613$ 7.20%
PRIOR YEAR EXPENDITURE COMPARISON
CITY OF SANTA CLARA
SPECIAL REVENUE FUNDS
REVENUE AND EXPENDITURES - OVERVIEW AND COMPARISON BY FUND REVENUE - FISCAL YEAR 2024/25 PRIOR YEAR REVENUE COMPARISON EXPENDITURES - FISCAL YEAR 2024/25
11 City of Santa Clara
Financial Status Report as of October 31, 2024
Governmental Capital Improvement Funds
The table below lists the revenue for selected capital improvement funds. The amended budget reflects current year appropriations, prior year carryover, and budget amendments approved through October 2024. As of October 31, 2024, the capital fund revenue totaled $4.3 million.
REVENUE - FISCAL YEAR 2024/25
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 10/31/2024 Use d City Affordable Housing Capital Fund -$ -$ -$ 832,997$ NA Parks & Recreation - 3,349,489 3,349,489 649,630 19.39% Related Santa Clara Developer 795,344 - 795,344 - 0.00% Storm Drain 1,454,000 3,000,000 4,454,000 493,636 11.08% Streets & Highways 6,098,308 22,490,903 28,589,211 2,257,627 7.90% Tasman East Specific Infrastructure
Improvement Fund
3,734,932 - 3,734,932 82,144 2.20% TOTAL 12,082,584$ 28,840,392$ 40,922,976$ 4,316,034$ 10.55%
CITY OF SANTA CLARA
GOVERNMENTAL CAPITAL IMPROVEMENT FUNDS
REVENUE - OVERVIEW AND COMPARISON BY SELECTED FUND
The table below lists the total amended budgeted amounts for expenditures in the Capital Improvement Funds. Similar to the revenue table, the amended expenditure budgets consist of current year appropriations, prior year carryover encumbrance balances in Governmental Capital Improvement Funds, and budget amendments approved through October 2024. As of October 31, 2024, capital fund expenditures totaled $12 million, or 7% of the amended budget, well below par of 33.3%.
As part of the adoption of the FY 2024/25 and FY 2025/26 biennial capital improvement program budget, some capital funds were carried over for projects that were not anticipated to be completed by June 30, 2024. Necessary additional adjustments to the capital carryover amounts were included as part of the FY 2023/24 Budget Year End Report approved on December 3, 3024 and will be reflected in a future monthly financial report.
12 City of Santa Clara
Financial Status Report as of October 31, 2024
EXPENDITURES - FISCAL YEAR 2024/25
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 10/31/2024 Use d Fire 1,473,700$ 1,247,874 2,721,574$ 311,784$ 11.46% General Gov't - Other 2,390,820 9,127,697 11,518,517 574,313 4.99% Library 471,848 248,407 720,255 7,723 1.07% Parks & Recreation 7,654,966 25,525,570 33,180,536 1,592,194 4.80% Public Buildings 1,792,207 5,442,248 7,234,455 421,661 5.83% Related Santa Clara Developer 795,344 393,992 1,189,336 122,707 10.32% Storm Drain 2,161,450 7,135,999 9,297,449 591,621 6.36% Streets & Highways 21,441,923 77,468,474 98,910,397 8,345,712 8.44% Tasman East Specific Infrastructure
Improvement Fund
1,432,193 1,433,994 2,866,187 6,358 0.22% TOTAL 39,614,451$ 128,024,255$ 167,638,706$ 11,974,073$ 7.14%
CITY OF SANTA CLARA
SUMMARY OF EXPENDITURES
GOVERNMENTAL CAPITAL IMPROVEMENT FUNDS
13 City of Santa Clara
Financial Status Report as of October 31, 2024
Enterprise Funds
The table below is a summary of revenues and expenses for the Enterprise Operating Funds as of October 31, 2024. Overall, revenues are tracking slightly above budgeted estimates, while expenditures are tracking below budgeted levels.
Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 10/31/2024 Received 10/31/2023 Prior Year Change Cemetery Fund 750,000$ 750,000$ 189,167$ 25.22% 153,218$ 35,949$ 23.46% Electric Utility Fund 893,397,959 893,397,959 345,709,470 38.70% 204,364,823 141,344,647 69.16% Sewer Utility Fund 46,989,803 46,989,803 15,410,929 32.80% 26,885,699 (11,474,770) -42.68% Solid Waste Utility Fund 41,561,372 41,561,372 11,420,020 27.48% 11,054,835 365,185 3.30% Water Recycling Fund 8,507,338 8,507,338 3,445,005 40.49% 2,945,654 499,351 16.95% Water Utility Fund 64,096,935 64,096,935 22,297,940 34.79% 18,768,164 3,529,776 18.81% TOTAL REVENUE 1,055,303,407$ 1,055,303,407$ 398,472,531$ 37.76% 264,172,393$ 134,300,138$ 50.84% Actual Actual $
Fund Adopted Amended Through Percentage Through Change From Percent Description Budget Budget 10/31/2024 Use d 10/31/2023 Prior Year Change Cemetery Fund 1,628,800$ 1,628,800$ 425,214$ 26.11% 387,520$ 37,694$ 9.73% Electric Utility Fund 649,513,582 667,335,619 179,186,348 26.85% 183,889,966 (4,703,618) -2.56% Sewer Utility Fund 38,762,083 39,278,049 17,088,240 43.51% 10,448,643 6,639,597 63.55% Solid Waste Utility Fund 40,775,942 43,928,485 12,448,844 28.34% 10,927,569 1,521,275 13.92% Water Recycling Fund 9,307,289 9,332,389 2,144,571 22.98% 467,666 1,676,905 358.57% Water Utility Fund 57,614,177 58,830,207 18,252,489 31.03% 16,189,477 2,063,012 12.74% TOTAL - Operating
Appropriations
797,601,873$ 820,333,549$ 229,545,706$ 27.98% 222,310,841$ 7,234,865$ 3.25% PRIOR YEAR EXPENSE COMPARISONEXPENSES - FISCAL YEAR 2024/25
CITY OF SANTA CLARA
ENTERPRISE OPERATING FUNDS
REVENUE AND EXPENSES - OVERVIEW AND COMPARISON BY FUND
REVENUE - FISCAL YEAR 2024/25 PRIOR YEAR REVENUE COMPARISON
While revenues are tracking slightly higher than prior years, expenditures are consistent with prior year levels. Revenue in the Electric Utility Fund is tracking above the prior year due primarily to bond proceeds of $130.6 million received in FY 2024/25. In the Sewer Utility Fund, revenue is tracking below the prior year due to the issuance of debt in FY 2023/24. Additionally, in the Water Recycling Fund, a payment for the 4th quarter of last fiscal year was recorded in the current fiscal year due to the timing of receipt of the invoice. A budget adjustment to carryover the budget from FY 2023/24 to FY 2024/25 was included in the FY 2023/24 Budgetary Year-End Report for that payment.
Revenues in the electric (which also includes the Electric Debt Service Fund), water, and sewer utility (which also includes the Sewer Debt Service Fund) and water recycling funds are primarily from customer service charges. The activity levels for these customer service charges also impact the resource and production costs on the expenditure side for these funds. The lower the revenue from customer service charges, the lower the expenditures in the resource and production category.
14 City of Santa Clara
Financial Status Report as of October 31, 2024
A summary of revenue and expenses in the Enterprise Capital Improvement Funds is detailed in the table below. Actual revenue through October 31, 2024, totaled $6.1 million, consisting primarily of developer contributions and load development fees in the Electric Utility Fund and sewer fees in the Sewer Utility Fund. Enterprise capital fund expenses totaled $18.9 million, or 3.8% of the amended budget. Similar to the general government capital funds, capital funds were carried over from FY 2023/24 as part of the FY 2024/25 and FY 2025/26 budget adoption process for those projects that were not expected to be completed by June 30, 2024. Necessary additional adjustments to the capital carryover amounts were included as part of the FY 2023/24 Budget Year End Report approved on December 3, 3024 and will be reflected in a future monthly financial report.
Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 10/31/2024 Use d Convention Center Capital
Fund
550,000$ -$ 550,000$ -$ 0.00% Electric Utility Fund 25,299,629 26,213,951 51,513,580 5,453,904 10.59% Sewer Utility Fund - - - 636,048 N/A Solid Waste Utility Fund 258,000 - 258,000 2,258 0.88% Street Lighting (1) - - - 837 N/A Water Recycling Fund - - - - N/A Water Utility Fund - - - 30,684 N/A TOTAL - Revenue 26,107,629$ 26,213,951$ 52,321,580$ 6,123,731$ 11.70% Actual
Fund Current Year Prior Year Total Amended Through Percentage Description Appropriation Carryforward Budget 10/31/2024 Use d Cemetery Fund 4,689$ 17,835$ 22,524$ 1,563$ 6.94% Convention Center Capital
Fund
2,700,000 1,726,973 4,426,973 201,166 4.54% Electric Utility Fund 220,973,144 198,533,383 419,506,527 11,919,091 2.84% Sewer Utility Fund 20,325,410 28,269,938 48,595,348 4,451,482 9.16% Solid Waste Utility Fund 788,000 119,873 907,873 199,799 22.01% Street Lighting (1) 5,365,000 3,405,462 8,770,462 40,881 0.47% Water Recycling Fund 400,000 - 400,000 238 0.06% Water Utility Fund 5,795,000 6,127,745 11,922,745 2,043,470 17.14%
TOTAL - CIP
Appropriations
256,351,242$ 238,201,210$ 494,552,452$ 18,857,690$ 3.81%
CITY OF SANTA CLARA
ENTERPRISE CAPITAL IMPROVEMENT FUNDS
SUMMARY OF EXPENDITURES
EXPENDITURES - FISCAL YEAR 2024/25
CITY OF SANTA CLARA
ENTERPRISE CAPITAL IMPROVEMENT FUNDS
REVENUE - OVERVIEW AND COMPARISON BY SELECTED FUND
REVENUE - FISCAL YEAR 2024/25
(1) Street Lighting fund is part of Electric Capital Improvement Funds
15 City of Santa Clara
Financial Status Report as of October 31, 2024
Fund Reserves
By policy, City Council established the City’s General Contingency Reserve, under which reserves for Budget Stabilization and Capital Projects were established. • Budget Stabilization Reserve is set aside for weathering economic downturns, emergency financial crisis, or disaster situations. The reserve target is equal to the expenditures of the City’s General Fund operations for three months (90-day or 25% General Fund Adopted Operating Budget). In FY 2024/25, the City Council approved an exception to the policy to allow the Reserve to drop to a minimum of 15% of expenditures. • Capital Projects Reserve earmarks funds for the Capital Improvement Program.
Other General Reserves and Enterprise Fund Reserves included in this report are highlighted as follows:
• Technology Fee Reserve is set aside to update and/or replace the City’s aging technology and to ensure internal controls are in compliance with current business standard and legal requirements.
• Land Sale Reserve is net proceeds from the sale of City-owned land, with interest earned on these funds available to be appropriated for General Fund operating expenditures. This reserve is available for appropriation by City Council action.
• The Electric Utility Rate Stabilization Reserve and Operations and Maintenance Reserve ensures sufficient operating cash is available to cover day-to-day expenses, address unforeseen cost increases or revenue shortfalls, and ensure debt service coverage. • The Replacement and Improvement Reserve in the Water and Sewer Utility Funds is for future capital improvement.
The table below summarizes select reserve balances.
16 City of Santa Clara
Financial Status Report as of October 31, 2024
DETAIL OF SELECTED FUND RESERVE BALANCES:
GENERAL
FUND ELECTRIC WATER
Budget Stabilization Reserve 53,131,576$
Capital Projects Reserve 7,769,117
Land Sale Reserve 18,481,036
Technology Fee Reserve 2,488,729
Electric Rate Stabilization Fund Reserve 66,000,000$
Electric Operations and Maintenance Reserve 195,000,000 Replacement & Improvement 303,090$
TOTALS 81,870,458$ 261,000,000$ 303,090$
CITY OF SANTA CLARA
RESERVE BALANCES
October 31, 2024
Donations to the City of Santa Clara
Donations received by department during the month of October 2024 and for fiscal year 2024/25 are shown in the table below.
Department Oct-24
Fis cal Year
2024/25
Year To Date Designated Use
City Manager's Office - 2 Help Your Neighbor Parks & Recreation 2,000 2,500 Case Management Parks & Recreation - 632 Reed/Grant Park Soccer Equipment Parks & Recreation - 2,781 Roberta Jones Jr. Theatre Parks & Recreation 14,425 19,375 Wade Brummal TOTALS 16,425$ 25,290$